(STL.News) – Attorney General Mark R. Herring today announced a global settlement framework agreement between a bipartisan coalition of 40 state attorneys general and Mallinckrodt (MNK), its subsidiaries, and certain other affiliates. As part of the settlement, MNK has agreed to pay $1.6 billion in cash to a trust that will cover the costs of opioid addiction treatment and related efforts, with the potential for increased payment to the trust. MNK also agrees that its future generics opioid business will be subject to stringent injunctive relief that, among other things, will prevent marketing and ensure systems are in place to prevent diversion. MNK is currently the largest generic opioid manufacturer in the United States.
“The roots of the opioid crisis began in the boardrooms and marketing offices of pharmaceutical companies like Mallinckrodt and ran straight into Americans’ medicine cabinets,” said Attorney General Herring. “Families across Virginia and around the country have been torn apart by this devastating epidemic. This settlement is just another step in making sure that opioid manufacturers are held accountable for the role that they played in creating and prolonging this crisis.”